windows - Server 2008 R2 Permissions for Department Folder

Forgive me if I'm not too clear, I've been working for the last 18 hours. Here's my question:

I'm new to Server 2008. I'm attempting to set up a Department folder, with all departments listed beneath it. I want everyone to have read access on the Department folder itself so they can list it's contents, but then only the appropriate people have access to actually get into the subfolders. I set it up how I usually do in 2003: I set the permissions on the top-level Department folder to Everyone (Read, List Contents, Read and Execute). I then set the permissions on the sub folder to not inherit from the parent, and give only domain admins and the appropriate security group full control. The problem is, everyone who goes to the Dept folder sees nothing. It shows up empty.

Can someone give me an idea in Server 2008 R2 how the permissions for this scenario should look? Thanks!